- Canadian air cargo operators are shifting focus from capacity to service reliability, as pharmaceutical, perishables and aerospace shippers prioritize timing certainty, safe handling and predictable escalation channels.
- Efficient operational communication and coordination – both digitally and on the ground – are now our key differentiators, ensuring responsiveness to orderly or time-critical shipments across the trans-Atlantic and North American corridors.
- Competitive pressure is expected to grow through 2025, as success hinges on carriers’ ability to agile networks, maintain ground responsiveness, and provide reliable escalation paths amid stable capacity and evolving geopolitical or regulatory challenges.
Air cargo operators are focusing more on reliability and connections as global volumes stabilize and competition shifts from capacity to service performance. After several years of volatility, shippers in sectors such as pharmaceuticals, perishables and aerospace are prioritizing timing certainty and safe handling. These flows represent a large share of Canadian exports transported by air freight and often require close coordination at both origin and destination.
Network reliability and escalation
Canada’s location between the transatlantic and North American trade lanes gives domestic airlines a network advantage, but this advantage is only meaningful when operational communications work effectively. Service performance depends on alignment beyond pricing, said Mike Robbins, area manager at Expeditors. “We are consistent at all key levels, from the top up and through account management,” he said, noting that support from the Air Canada team has helped provide the cargo visibility customers expect.
At Kuehne+Nagel, which manages a high proportion of air and temperature-controlled shipments, clear escalation channels are seen as key to response. “If we have an issue, we can reach out to them and they are always quick to respond,” said Peter Muller, Canada’s president of air cargo, pointing to a recent urgent air shipment that required an early retrieval.
Such situations are becoming increasingly routine, as shippers expect carriers to adjust operations for regulated or time-critical cargo. The ability to provide predictable escalation is now seen as a differentiator amid a more stable market capacity.
Expectations
Capacity across the transatlantic and North American lanes remains stable, and carriers have less opportunity to rely on rate-based retention. Analysts expect competitive pressure to increase through 2025, as fleet deliveries, especially converted wide-body freighters, expand available lift.
Digital format is likely to be a critical factor, particularly for pharmaceuticals, aviation components and other regulated shipments that require chain-of-custody compliant tracking. If visibility tools and unified data exchange remain inconsistent between terminals, freight forwarders warn that bottlenecks will shift from aircraft parking space to ground handling decision-making times.
The next driver of volatility is expected to be geopolitical and regulatory rather than demand-driven. Changes in tariff structures and cross-border screening rules could change the economics of corridors with limited warning, giving greater importance to carriers able to reroute freight through secondary gateways. Canada’s position as a transshipment platform gives it structural advantages, but only if carriers can quickly flex networks and maintain ground-side responsiveness.
The central test for carriers over the coming year will be to stay engaged as demand remains uneven and customer expectations change. Rate pressures have eased compared to the height of the pandemic, but shippers are becoming more selective and anticipating guaranteed escalation paths for time-critical cargo.
“These situations are not one-time occurrences. Our customers demand flexibility and innovative solutions on a regular basis,” Mueller noted, adding that carriers unable to respond quickly risk losing specialist accounts.
“You’ll get reliability, but you still need the right touchpoints. It’s a big company, so you need to have the communications structure in place,” Robbins said, suggesting that freight forwarders will shift volumes toward carriers that maintain clear operational lines of communication.
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